From your website:
>>Unless vast new businesses are spawned, no comparative advantage is gained.<<
Totally agree, however the US will continue to out pace the world in innovation. New technologies are continually coming in medical, energy, automobile, defense, etc. All from private industry, not from government.
>>A tremendous slice of the US Economy is at risk of outsourcing.<< You say it but offer no proof. Some is at risk, not all. Your point is there is a tremendous amount of outsourcing happening, yet from the US labor statistics for civilian jobs, were are up 4 million jobs from January 2002 , that’s an average of 125,000 jobs per month, which is in line with your estimate of needing 100,000 / month.
>>We give away our only advantage, technology, while we build engines of wealth abroad.<<
That’s a loaded statement, but again you offer no proof. I totally disagree bring the rest of the world up economically is only to our advantage. Outsourcing is to our advantage in my POV as well. Are we better off keeping 3rd world countries impoverished? Your thinking that it’s a zero sum game and that we give away our wealth would say yes. But, nothing in history has said it’s a zero sum game. Advances have always created new wealth, it’s not a zero sum game.
>>It is doubtful that mainstream observers take the published 5.6% unemployment rate seriously. They know people who have lost jobs, whose work sites have announced layoffs, and those who no longer seek employment, the dropoffs who have exhausted benefits.<<
How many? Or how many are people who find new employment, again you say it yet offer no proof. I personally know 1 person who has been unable to find work in the last year. On the other hand I know about six who have found new jobs with equal pay. Do you say this because it’s your personal experience or do you say it because it’s fact? If it’s fact, you need to show it.
>>A nation which depends upon foreign imports sends vast amounts of money abroad, a given percentage of which is devoted to investment in new equipment, new buildings, and new consulting to refine the mfg processes. That is not happening inside the USA, but rather in Asia.<<
1st part I somewhat agree with, again yours is a zero sum game POV, mine is bring more countries to a higher playing field and we’ll all benefit in the long run. The trade deficit definitely is a concern if it gets too large. But this is one of those that’s been around for decades, and we seem to keep on keeping on. I have a huge trade deficit with my neighborhood market. I haven’t defaulted yet. The 2nd second statement I disagree, we can’t get contractors for some of our projects because they’re too busy, so that doesn’t jive.
>>The great shortfall of job creation during this recovery is abysmal, millions below anything in past cycles.<< Huh?, labor statistics don’t bare this out. Also the lay reader might respond that there is a war on, and resources have to go to this effort so there is going to be some impact.
>>How about a retort from the AFL-CIO? On their face, claims of net job growth are utterly ridiculous and laughable.<<
The whole arguments (in these few paragraphs) have plenty of pros and cons, the gentile reader is has been around the block a few times and KNOWS anything coming from AFL-CIO is a bunch of hyperbole just to support their own agenda. This just doesn’t do anything to your credibility.
>>The backlash has been an urgent plea to politicians to do something.<< I don’t sense the urgency that you do.
>>Response from the party in opposition is for removal of tax incentives which support both outsourcing and migration of headquarters to foreign locations. Isolation and barriers have never worked to develop prosperity. Now is no different. What starts as protectionist policies disguised as tax measures can very easily shift to direct trade protection in the form of tariffs and restricted access to markets (whether supplies or finished products).<<
I have some very strong agreement with you here. Go figure!
>>Their combined demand has led to stalled construction projects in Florida from cement shortage.<<
?? I read it but I don’t believe it. Also it doesn’t jive with your previous assertion that there is no building in the US. What you’re saying is that it’s economically feasible to ship cement aggregate to Greece vs getting from their European suppliers. Link that one please?
>>First is inevitable trade protection, whose final form is in doubt. What begins as tax measures to thwart the flow of jobs to Asia, is likely to mushroom into tariffs on Asian imported finished products, and restricted access to our markets<<
This statement is one reason that your support of a democrat president has me scratching my head. Kerry would more likely support this than Bush.
When I get a chance I’ll look at the rest.
Jim |
